Top 3 Advantages of Geofencing for Your Small Business

small business geofencing advantagesIf you have a mobile app for your small business, pat yourself on the back. Several small businesses lack mobile apps, and this means that you’re already at a solid advantage.

But now it’s time to learn how to use your app to actually create new sales and build your profits.

What is geofencing? Geofencing is defined as setting up a virtual boundary around a specific location and to trigger a message to someone’s phones whenever they enter that location.

In other words, geofencing means you can send a targeted messages to a potential customer once they enter the specified boundaries (usually a one to five mile radius around your business).

Geofencing accomplish this through a combination of Bluetooth, GPS, and RFID (radio frequency identification), and depends upon your mobile app and SMS messaging in order to distribute the targeted messages. Numerous businesses and companies have been using geofencing for several years now and have seen increased profits as a result.

Here are the top three advantages for geofencing for your small business:

1. It Reminds Customers About Your Business

The very first thing geofencing does is it reminds customers about your brand. Furthermore, it can help to draw them in since they are nearby.

Keep in mind, even if customers are still perfectly aware about your business, they may also not know about any promotional offers you currently have going on, but geofencing is a quick and convenient way to inform them. By making those offers only valid for a day or a few hours, the chances of more people stopping by increases dramatically.

2. It Gives You Insight Into Customer Behavior and Demographics

Geofencing allows you to collect data about the customers who actually used it to come visit your business. You’ll even be able to see how long it took for them to pay you a visit after receiving the message and if they stopped anywhere beforehand. This is all priceless information.

You’ll also be given a basic idea of which specific demographics are responding to your geofencing messages the most, which in turn means you will have a much easier time to write up future target messages because you’ll know exactly who you’re sending them to.

3. It Helps You Create A Personalized Experience For Your Customers

By knowing who is visiting your business from your geofencing messages, this will allow you to personalize the offers that you send to them. You can look back at a certain point in history and realize that a certain demographic of customers showed up at a specific time and maybe even preferred a particular product. You can then update your promotions accordingly.


Your small business needs to have an app if it doesn’t already, and once you get one, you can use geofencing in order to promote your brand, remind old customers of your products, and to increase your profits as a whole.

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